We have been patiently observing and waiting for the developing purple wave .4 bottom before purple wave .5 up begins. Is it possible that we are actually in a new downtrend and we should counting impulse waves to the downside? Yes, but we are at least due for a tradable bounce to the upside in here while 1.3113 remains as support.



One of my students from the recent seminar I gave emailed me today to alert me to this ending diagonal in EUR/USD. It was a nice piece of analysis he did based on the principles we covered. Heading into tonight, while 1.3113 support holds, we should expect a move back towards 1.3300 at a minimum. I am bidding 1.3170 and 1.3150 for 2 units each with stops for both at 1.3105. The first take profit for 2 unit is 1.3275, stop trail to cost, followed by target for 1 unit of 1.3315, and the final unit will be closed at 1.3425.



Todd Gordon is a Technical Currency Strategist and Fund Trader with GAIN Capital Group.

Disclaimer
The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.